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If you teach your son to fight back, alert him to the fact, that the second person gets caught, not the first who started it. In the meantime, get to know this bully and when you meet bully's parents, take a few moments to be conversational, weather is a safe topic.
I'm old school. I'd tell my son to let that kid know if he keeps talking about him that my son should punch him in the stomach.
FWIW a similar thing was going on with my son in kindergarten. I told him the above and he punched the kid and the kid stopped bullying. They later became friends
I think we make too big of bullying today as all kids (and adults) at some point in their lives will be bullied.
FWIW, I'd also let the teacher know that I told my son this - that he was going to protect himself as no matter what people say, words do "hurt" and oftentime they hurt more than physical blows.
You should also review the school/district's policy on bullying and what sort of steps they are supposed to be following. If the teacher is not following them, then escalate your complaints to the principal.